Human rights activist Deji Adeyanju has accused the Dangote Refinery of exploiting its dominant market position to impose excessive fuel price increases on Nigerian consumers. In a statement released over the weekend, Adeyanju alleged that the refinery, operated by businessman Aliko Dangote, hiked pump prices by over 100%, linking the increase to geopolitical tensions in the Middle East.
The activist’s core argument challenges the justification for the price hike. He notes that the Dangote Refinery sources its crude oil domestically from Nigerian fields under a government-approved arrangement. This policy, facilitated by the Nigerian National Petroleum Company (NNPC), allows crude sales in naira and was designed to stabilise local supply and insulate prices from foreign exchange volatility. Adeyanju contends that since the refined products currently distributed were processed before the recent escalation of hostilities in the Gulf region, consumers should not bear costs associated with later international events.
Adeyanju further raised concerns about competition in Nigeria’s downstream petroleum sector. He described the Dangote Refinery’s position as a near-monopoly, suggesting that limited competition enables unchecked pricing decisions. He accused the company of profiting from global instability at the expense of an economically strained populace, stating that the government appears either unwilling or unable to intervene.
The controversy centres on Africa’s largest refinery, which began operations in 2023 with a stated goal of ending Nigeria’s reliance on imported fuel. However, the pricing of its products remains a sensitive issue in a country where fuel costs directly impact inflation and the cost of living. The federal government had previously removed the decades-long fuel subsidy, a move that already led to significant price adjustments.
The activist’s statement underscores the tension between the refinery’s commercial operations and its public mandate. While the facility is hailed as a transformative investment for Nigeria’s energy security, its pricing mechanisms are now under public scrutiny. The allegation that a domestic operation is leveraging international conflicts to justify price increases adds a new dimension to debates on corporate responsibility and market regulation in Nigeria’s critical petroleum sector.
This development may invite further examination from regulatory bodies regarding pricing transparency and competitive practices within the downstream sector, as Nigerians continue to grapple with high living costs.
